Malawi and the African Trade Insurance Agency (ATI) 0f Wednesday signed a memorandum of understanding (MOU) that will guarantee financing for independent power producers(IPPs).
In a statement released on Wednesday, Minister of Finance and Economic Affairs Sosten Gwengwe said government is pleased to extend the successful partnership with ATI to include Power Market Limited(PML).
He said: ”The support received from ATI via the Regional Liquidity Support Facility(RLSF) has been helpful in supporting the governments objectives of attracting additional investments in the energy sector with the view of ensuring that Malawi has sufficient electricity to meet growing domestic and commercial demand.’
ATI Sector underwriter Pizzaro Lukhanda said Malawi has been the greatest beneficiary of their RLSF initiative.
He said: ”Having already supported three solar projects within the country, we look forward building on this early success and exploring additional areas of cooperation between ATI and the Government of Malawi.
The signing of the addendum will allow IPPs that enter into Power Purchase Agreements(PPA) with PML to benefit from RLSF cover.
Since the signing the original RLSF MoU with the Government of Malawi on 30th November 2018, ATI has provided instrumental guarantees to Nkhotakota, Salima and Golomoti solar power plants, enabling the projects, with a combined installed capacity of 101 megawatts.
Source: The Nation_April 1, 2022_By Steve Chilundu-Staff Reporter